On the agenda: Surplus, capital budget, Winspear parking
This week, council is set to receive an update on the operating and capital budgets and discuss a potential parking revenue agreement with the Winspear Centre.
There is a city council meeting scheduled for Dec. 8, and 10 and an audit committee meeting scheduled for Dec. 10. There is a council services committee meeting scheduled for the morning of Dec. 12 and an emergency advisory committee meeting scheduled for the afternoon of Dec. 12.
Here are some key items on the agenda:
- City administration has forecast a $15.7-million surplus in 2025, but said that it will not resolve Edmonton's financial challenges. The surplus can be attributed in part to revenue from admissions to city-owned attractions, EPCOR franchise fees, and tax penalties all being higher than expected. In a report set to be presented to council on Dec. 8, administration proposes to use the surplus to restore the financial stabilization reserve. This would allow the city to replenish the reserve in 2028, one year earlier than planned, so long as the city budget does not go into a deficit before then.
- Of the 85 projects in the 2023-2026 capital budget, 80 are within the acceptable tolerance for budget and 78 are within the acceptable tolerance for schedule, according to a report set to be presented to council on Dec. 8. The city is 61% delayed on its work to rehabilitate the Iron Works building, 28% behind on the Imagine Jasper Avenue project, and 120% behind on the downtown district energy project, as that project has increased in scope. The Enterprise Commons project is 45% over budget, the Heritage Valley land development project is 59% over budget, and the Capital Line LRT south extension is 34% over budget.
- City administration said it does not support creating a revenue sharing agreement with the Winspear Centre to allow the organization to earn revenue from the Century Place parkade. In 2014, the city loaned the Winspear $12.9 million to construct a parking structure for the Winspear's Completion Project. That parkade is not yet open, but has less than half the parking stalls that were originally planned, meaning the Winspear will collect less parking revenue than expected. That, in turn, will put pressure on its finances and ability to pay back its loan. The Winspear has now requested that the city allow it to collect revenue from the nearby Century Place parkade. For context, in 2021, the city and the Winspear entered into an agreement that saw the Winspear construct a shell to house an energy centre for the downtown district energy system. As part of that contract, the parties agreed to explore a revenue sharing agreement for the Century Place parkade, which city employees use during the day but otherwise sits mostly empty in the evenings and on weekends. Administration has presented three options. The city could enter into an agreement to allow the Winspear to earn revenue from the lot during evenings and weekends. Under this option, the city would be required to fund $1.1 million in security upgrades. The second option is for the city to grant the Winspear a license to operate the Century Place parkade. In this scenario, the Winspear would be responsible for operational funding and licensing fees, and would collect revenue from the lot; the city, meanwhile, would need to fund the security upgrades. Administration has noted the second option may reduce market interest in Century Place, which it plans to sell. The third option is for the city to give the Winspear $5 million, a payout based on the projected revenue for a 20-year lease of the lot. Administration said the city has no legal obligation to provide parking revenue to the Winspear.